Tabcorp pub deal trumps James Packer and CrownBet

Tabcorp will today reveal an exclusive wagering deal with NSW pubs to effectively stop rival CrownBet expanding.

Tabcorp FY17 earnings mix.

Tabcorp will today reveal an exclusive wagering deal with NSW pubs to effectively stop rival CrownBet from extending its controversial clubs agreement to hotels across the state.

Tabcorp and CrownBet are locked in an ongoing battle after the James Packer-backed gaming group reached a deal in February to provide exclusive digital wagering services to 1200 clubs across the state.

Under the clubs deal, CrownBet provides Wi-Fi and encourages club customers to bet using the company’s wagering app and it has also started to roll out ‘‘cash in, cash out’’ machines that allow punters to collect their money on winning bets.

The ClubsNSW digital deal, which is reportedly worth up to $300 million, took the gaming industry by surprise, with Tabcorp widely seen as the favourite to win the transaction.

The loss has been a major sticking point for Tabcorp, which is pushing ahead with its ambitious bid to create an $11 billion mega-gaming group with rival Tatts Group. CrownBet has teamed up with Racing Victoria to protest against the merger proposal and argued the deal will leaving punters worse off across the east coast.

However, Tabcorp chief executive David Attenborough will today announce a deal with Australian Hotels Association NSW for a five-year wagering partnership.

There are 1116 AHA members across the state, and under the deal the pubs will receive a commission from the bets placed at their venues on the TAB app. The rate is the same as when bets are placed in cash.

Mr Attenborough said it was important the hotels received revenue to reflect the changing nature of the way punters placed bets.

It is estimated that NSW pubs and hotels account for $1.6 billion in annual TAB turnover.

“We are pleased to reach this agreement with the AHA NSW and its member hotels. Having a bet in a pub is an Australian social tradition and this partnership helps us and our venues to deliver the best wagering experience,” Mr Attenborough said.

“At the same time, we are making sure pubs benefit no matter how customers choose to bet within the venue.”

AHA NSW chief executive John Whelan said wagering turnover through the state’s hotels remained strong, and the Tabcorp deal would give pub customers flexibility to place bets.

“We’re thrilled to partner with Tabcorp for a further five years. We’re particularly excited with the direction Tabcorp is heading with digital wagering in PubTABs and we’re looking forward to the rollout of new hotel products and technology over the next five years.

“You can’t beat an afternoon at your local pub with friends having a few bets. It’s a unique Australian tradition. This partnership will allow us to provide punters an even better pub wagering experience.”

Tabcorp has also started rolling out digital form in pubs and retail betting agencies and increased investment in displaying digital odds.

Tabcorp has grown keener to combat CrownBet’s growing ambitions. It signed a deal last month for a similar wagering deal with Community Clubs Victoria and Clubs Queensland recently said it was unlikely to follow the NSW lead and sign with CrownBet.

CrownBet chief executive Matt Tripp has previously flagged the group was keen to expand strongly in Queensland.